Stocks Fall On More Euro Zone Debt Concerns and Job Worries
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U.S. stocks, and those around the world, are under heavy pressure today as debt concerns in Europe have crept back into the market. In addition, unemployment data today in the U.S. showed an unexpected increase.
A 1:36PM ET the Dow is down 206 points, the Nasdaq is down 49 and the S&P 500 is down 26. World stocks, as represented by the MSCI World Index, fell 2.4% which is the most since October 1st.
Euro zone debt concerns stem from news in Portugal and Spain, which is in addition to the ongoing trouble in Greece. The yield on the 10-year note in Portugal rose 12.1bp to 4.81 percent and the spread over the 10-year Bund widened to as high as 175bp. CDS on Portuguese debt also rose. Spain sold 2.5 billion Euros securities to yield 2.63 percent today, up from a yield of 2.14 the last time the notes were issued.
Initial jobless claims in the U.S. showed an increase of 480,000 last week, which was ahead of the consensus of a 455,000 rise. The data is in contrary to the view that the employment picture in the U.S. is improving.
With the concerns in Europe, the U.S. dollar has jumped to a seven month high. This is pushing many commodities like gold and steel lower.
Related ETFs:
Market Vectors Steel ETF (NYSE: SLX)
SPDR Gold Shares (NYSE: GLD)
PowerShares DB US Dollar Index Bullish (NYSE: UUP)
UltraShort 20+ Year Treasury ProShares (NYSE: TBT)
A 1:36PM ET the Dow is down 206 points, the Nasdaq is down 49 and the S&P 500 is down 26. World stocks, as represented by the MSCI World Index, fell 2.4% which is the most since October 1st.
Euro zone debt concerns stem from news in Portugal and Spain, which is in addition to the ongoing trouble in Greece. The yield on the 10-year note in Portugal rose 12.1bp to 4.81 percent and the spread over the 10-year Bund widened to as high as 175bp. CDS on Portuguese debt also rose. Spain sold 2.5 billion Euros securities to yield 2.63 percent today, up from a yield of 2.14 the last time the notes were issued.
Initial jobless claims in the U.S. showed an increase of 480,000 last week, which was ahead of the consensus of a 455,000 rise. The data is in contrary to the view that the employment picture in the U.S. is improving.
With the concerns in Europe, the U.S. dollar has jumped to a seven month high. This is pushing many commodities like gold and steel lower.
Related ETFs:
Market Vectors Steel ETF (NYSE: SLX)
SPDR Gold Shares (NYSE: GLD)
PowerShares DB US Dollar Index Bullish (NYSE: UUP)
UltraShort 20+ Year Treasury ProShares (NYSE: TBT)
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